Dems ask Mnuchin to probe Russian investment in state election tech

Dems ask Mnuchin to probe Russian investment in state election tech
© Anna Moneymaker

Maryland Sens. Ben CardinBenjamin (Ben) Louis CardinWarren, Klobuchar call on FTC to curtail use of non-compete clauses Overnight Energy: EPA moves to raise ethanol levels in gasoline | Dems look to counter White House climate council | Zinke cleared of allegations tied to special election Democrats offer legislation to counter White House climate science council MORE and Chris Van HollenChristopher (Chris) Van HollenOvernight Defense: Trump to reverse North Korea sanctions imposed by Treasury | Move sparks confusion | White House says all ISIS territory in Syria retaken | US-backed forces report heavy fighting | Two US troops killed in Afghanistan The Hill's 12:30 Report: Manafort sentenced to total of 7.5 years in prison Hillicon Valley: Google takes heat at privacy hearing | 2020 Dems to debate 'monopoly power' | GOP rips net neutrality bill | Warren throws down gauntlet over big tech | New scrutiny for Trump over AT&T merger MORE, both Democrats, asked Treasury Secretary Steven MnuchinSteven Terner MnuchinTrump officials heading to China for trade talks next week US sanctions Venezuelan bank after Guaidó aide's arrest Treasury expands penalty relief to more taxpayers MORE on Tuesday to review a Russian oligarch’s investment in a company that runs part of the state’s election system.

In a letter, Cardin and Van Hollen asked Mnuchin to scrutinize venture fund AltPoint Capital’s investment in ByteGrid through the Committee on Foreign Investment in the U.S. (CFIUS). The panel, chaired by the Treasury secretary, reviews foreign acquisitions of U.S. businesses for national security risks.

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The senators’ letter comes as federal and state law enforcement officials prepare to fight attempts by foreign nations to influence or hack the upcoming midterm elections.

“Access to these systems could provide a foreign person with ties to a foreign government with information that could be used for intelligence or other purposes adverse to U.S. interests,” Cardin and Van Hollen wrote.

“We know that our elections are under threat from foreign cyberattacks and disinformation efforts. Our democratic process can also be manipulated through foreign investment in elections infrastructure.”

AltPoint Capital holds an ownership stake in ByteGrid, which hosts Maryland’s voter registration system, candidacy and election management system, online ballot delivery system and unofficial election night results website. AltPoint’s largest investor is Vladimir Potanin, who is reportedly close to Russian President Vladimir Putin.

Maryland officials have expressed fears that their state’s election system could be compromised through the Russia connection to ByteGrid. Maryland Attorney General Brian Frosh (D) began an investigation of the firm hours after special counsel Robert MuellerRobert Swan MuellerSasse: US should applaud choice of Mueller to lead Russia probe MORE indicted 12 Russian intelligence officers for the 2016 hack of the Democratic National Committee (DNC).

“Even the appearance of the potential for bad actors to have any influence on our election infrastructure could undermine public trust in the integrity of our election system,” said Maryland Gov. Larry Hogan (R) last month.

Annie Eissler, chief marketing officer for ByteGrid, told Maryland officials that the company’s investors “have no involvement or control in company operations,” according to The Baltimore Sun.

Cardin and Van Hollen asked Mnuchin to begin a CFIUS review of Potanin’s connection to ByteGrid and intervene if it poses a threat to U.S. national security or critical infrastructure.

The committee has blocked or effectively killed several planned foreign acquisitions of U.S. tech companies, primarily by Chinese firms, during President TrumpDonald John TrumpHow to stand out in the crowd: Kirsten Gillibrand needs to find her niche Countdown clock is on for Mueller conclusions Omar: White supremacist attacks are rising because Trump publicly says 'Islam hates us' MORE’s first term. The panel has received bipartisan support from lawmakers concerned about the country’s ability to stave off espionage and intellectual property theft from U.S rivals.

Congress boosted CFIUS’s powers in a massive defense spending bill that Trump is expected to sign within days. The bill expands the scope of deals that CFIUS can inspect and block to investments touching critical infrastructure, which can include technology used to conduct elections.